First Home Savings Account (FHSA)

The FHSA provides eligible first-time homebuyers the ability to contribute, or transfer from their RRSP, $8,000 annually, up to a $40,000 lifetime limit, to use towards the purchase of a qualifying home in Canada.

Investments will grow tax-free while in the registered plan. Contributions to an FHSA will be tax deductible, like contributions to a registered retirement savings plan (RRSP). Withdrawals to purchase a qualifying home, including of any investment income or growth earned in the account, will be non-taxable, like withdrawals from a tax-free savings account (TFSA).

CIBC plans to have the account available by the end of 2023.

To open an FHSA at CIBC, you must be a Canadian resident who has reached the age of majority in your province or territory. You must also be considered a "first-time homebuyer".

Learn more about eligibility for the FHSA

If you're a newcomer to Canada, you can open an FHSA if you're a Canadian resident for tax purposes who has a SIN or temporary SIN. In addition to being the age of majority in your province or territory of residence, you must also meet the criteria for a "first-time homebuyer".

To be considered a first-time homebuyer, you must not have lived in as a principal place of residence at any time during the part of the calendar year before the account is opened or at any time in the preceding four calendar years, a “qualifying home” (or what would be a qualifying home if it was located in Canada) that either (i) you owned or (ii) your spouse or common law partner owned (if you have a spouse or common law partner at the time of opening the account).^ⓘ 

If you're in Canada on a visa, you can open an FHSA if you're a Canadian resident for tax purposes who has a SIN or temporary SIN. In addition to being the age of majority in your province or territory of residence, you must also meet the criteria for a "first-time homebuyer".

To be considered a first-time homebuyer, you must not have lived in as a principal place of residence at any time during the part of the calendar year before the account is opened or at any time in the preceding four calendar years, a “qualifying home” (or what would be a qualifying home if it was located in Canada) that either (i) you owned or (ii) your spouse or common law partner owned (if you have a spouse or common law partner at the time of opening the account).^ⓘ 

Yes, you can carry forward any unused contributions up to $8,000 in any year. Your carry-forward amounts will only start accumulating once you've opened an FHSA for the first time. 

An FHSA is permitted to hold the same types of qualified investments that are currently allowed in a TFSA and RRSP, including mutual funds, publicly traded securities, government and corporate bonds, guaranteed investment certificates (GICs) and savings accounts. You will not be able to hold private securities or private placements in an FHSA.

You must meet the eligibility requirements outlined by the federal government to open an FHSA. To withdraw your FHSA savings tax-free, your home must meet the eligibility requirements for a "qualifying home".

Learn more about eligibility for the FHSA

Yes. You can use savings from your RRSP Home Buyer's Plan and your FHSA towards the purchase of the same qualifying home purchase.

Learn more about the RRSP Home Buyers' Plan